Thailand eyeing tighter restrictions on foreign businesses

[NCC1701A]

Thailand for Thais... buffalo go home...

[Shaunduhpostman]

The momentum and the general sentiment, Thailand rules, foreigners suck has been underway for well over a decade, so such moves are fully expected and there will be many more like it I'm sure. That it seems that it will harm the country, well, the elites won't be harmed, the more trashed the economy the more they will benefit, so it is likely a deliberate move to make things worse. More cheap labor, cheap assets to snatch up and away they go.

[Fullstop]

Thailand eyeing tighter restrictions on foreign businesses

Not tight enough already? ... Message to World. "We don't want your business"

[whybother]

Well there you go. If this announcement had been made during Yingluk's tenure this forum would be in meltdown. Oh the irony of seeing all you coup apologists (you know who you are) condemning this measure. For goodness sake, the coup and Suthep's actions were partly about Taksin for sure, but it was always about getting the old elite back to the trough, and this measure is just part of that process.

They tried it inn 2007 after the last coup but the international business community in Thailand pushed back. Now the elites and the beurocracy are having another go.

Sure the likes of Toyota and IBM are going to be protected, but it's the smaller foreign companies and guys taking care of their Thai families who are going to take the hit if this measure is ever approved. Sometimes you have to be careful what you wish for.

It was announced during Yingluck's tenure. The Joint Foreign Chambers of Commerce were discussing these issues with the government over 12 months ago.

[Jonmarleesco]

'"To them, this is not about chasing away foreign businesses but protecting Thai ones ...' Protecting Thais from the harsh realities of life, whether at a business or a personal level, has long been one of every Thai government's objectives. Called protectionism or populism, dependent on its structure and aim, governments way before the era of Thaksin, practised it, at one level, or another.

But one has to wonder just what was going through collective ministerial minds when they came up with this nugget. Emerging market economies are slowing in general, Thailand more so; Asean - and with it, trade liberalisation - is on the horizon; the country might not like it, but it needs foreign investment, and much more than foreign investment needs it. Yet here we have a proposal that would expect foreign-run businesses to cede control to Thai 'shareholders'. How many foreign businesses does the MoC think will wear that? Small and flexible operations will up sticks to an Asean neighbour. Larger and less flexible ones will reconsider future plans, including expansion. And new ones? Well, they simply won't come.

But TiT. No doubt we'll have to wait and see what eventually comes out of it.

[oneday]

On the one hand they are trying to do everything they can to encourage foreign investment and then the other hand does something like this. How incredibly stupid can they be.

[media]

Im sure that the gov are planting these stories on here (making the stories up know that they will go on here and wind us all up.
They have these Forums, and enjoy watching us shreek and squirm.

<deleted>

[Thai at Heart]

Move on you bunch of low life bums.

Yeah. Tesco and Holcim. On your way.

[deecee10]

How many times can you shoot yourself in the foot before you realise that dismemberment is not in your best interests?

[Beetlejuice]

Execellent. For those who complain, no one asked you to start a 'business' in Thailand. Somehow foreigners stil think that Thai need them, think twice. Most Thai having university degrees are very well educated whether it is IT, economics etc and can work at any Multi National. For the small 'businesses' I think it is completely logic government helps to protect Thai interest.

Are you trying to be funny or do you really mean what you say?

In the western world, we have 15 year old computer geeks more educated in IT than 25 year olds with a university degree in IT.

I have worked with around 30 "programmers" here in Thailand during my eight years here and none comes even close to compete with programming skills or creativity to solve normal everyday programming problems with a farang.

Thai culture puts a halt on creative thinking as no one wants to stand out in the crowd.

Thais can't even understand and learn from English written computer literature as their language skills are too poor.

For those few Thais that can, they themselves, flees Thailand and ends up in another country who pays more, don't have illiterate bosses etc.

Really? It`s a shame that the Thais do not share your opinions that farangs are superior to Thais in education and skills that the Thais could never compete with. The question is, how would Thailand manage to function without the intervention of westerners shaping their society and showing them how things should be done?

The Thais are not as inferior and of low intelligence as you try to portray them, they may try to squeeze the golden goose a little but have enough savvy to know not to kill it off completely. The foreign owed large companies and the BOI have mutual agreements that is to the satisfaction of all concerned, these new policies will not place at risk the relationships between the big foreign shareholder companies and the Thai Board of Trade.

The companies that will be mostly affected are the more non-significant foreign run businesses that the Thai authorities perceive have having little or no benefits to Thailand and if not able to hack it under the laws of foreign shareholder companies policies, do not give a rat`s behind if they just fade away into oblivion. The only people who will be griping the most are the farangs who are unable to own and run companies in the kingdom strictly pertaining to Thai company law ownerships and brassed off that the good days of making profits without putting back what they take out and low expenditure is coming to an end and this will not have any negative affects on Thailand whatsoever.

[cmsally]

It's already rumoured that Tesco may sell its Thai operation in order to help plug the whole in the rather large accounting mess. I would imagine the Thai biggies will be ready to acquire and this kind of news could only help them by driving away any foreign competition.

[pistachios]

I just laughed when I saw this thread just above this one

"Thailand's Board of Investment (BoI) admits that foreign investment is declining"

[Equalizer]

What do they care, the people who propose all these idiotic nationalistic policies are sitting on a shed full of money and who's personal fortune will sustain the next 10 generations of their kin folk. These people are not interested in the Thai economy whatsoever, they are only interested in implementing the farmer, buffalo folk law stories and who exist in a dizzy world of ancient Thai ritualistic living. The problem is all your Oxfords and Cambridge's of this country are the recruiting mechanism for these dizzy do gooders. There is a ground in Theology here in the upper echelons and it rivals any country in size and scope.

[tullynagardy]

How much more proof do people need that this junta seeks simply to serve self the handful of elite at the top and couldn`t give a sh1t about the rest of the country!?

This business elite don`t want foreign competition and don`t care about the potential for job losses as they and those around them will still live a life of luxury.

Thailands is taking a horrible turn for the worse than anyone with half a brain could have forseen the moment Psycho Suthep started marching the streets.

[trainman34014]

The simple answer to this nonsense is for foreign countries to apply the same rules to Thai's who want to invest in other countries. And while their about it apply the same rules to home and land ownership. Then lets hear the pigs squeel.

[chainarong]

1997 Thailand had it all going for them by 2016 Thailand now Junk status.

[whybother]

How much more proof do people need that this junta seeks simply to serve self the handful of elite at the top and couldn`t give a sh1t about the rest of the country!?

This business elite don`t want foreign competition and don`t care about the potential for job losses as they and those around them will still live a life of luxury.

Thailands is taking a horrible turn for the worse than anyone with half a brain could have forseen the moment Psycho Suthep started marching the streets.

I'm actually getting sick of repeating myself, but people are seeing the headline and not reading the comments.

These changes to the FBA were being discussed more than 12 months ago while Yingluck was in power.

How much more proof do YOU need to see that the Yingluck government seeks ... blah blah blah.

[firestar]

It was announced during Yingluck's tenure.

Huh?!???

Proof please?

Last week the Japanese envoy warned of an exodus after I quote being 'shocked at the revelation', British ambassador Mark Kent took the time to write a blog post. In 2007 United States ambassador to Thailand Ralph Boyce spoke out : http://www.nationmultimedia.com/2007/04/01/national/national_30030797.php So if this was "announced" during Yingluck's tenure, or discussed seriously, surely you have news articles, or is this one of the secret secret evil plans only yellows know about?

UNBELIEVABLE. get your head out of the sand.

[ggold]

The current law forbids foreign majority ownership in sectors where Thai businesses are deemed not ready to compete with foreign companies.

Those include accountancy, legal services, architecture, engineering, brokerages, advertising, hotel operations, food and beverages and "other service businesses."

Why can't Thai business compete in these areas?

because they are monopoly business. Which if they were opened up to outside competition, would be taking money out of politicians pockets!

[cmsally]

http://www.reuters.com/article/2014/11/18/us-tesco-asia-idUSKCN0J22EW20141118

Edited November 20, 2014 by cmsally

[klauskunkel]

What do you think they discuss in their meetings prior to the announcements???

I will get the ball rolling with these master pieces.

1: Damn Pesky Foreigners coming here to our country, well we will show them.

2: Lets announce the destruction of Foreign Company's we would be far better off without them.

3: Lets drive our stock market down by at least 10% today.

4: Lets blame the Foreigners for our woes.

no meetings and no discussions.

someone has a revelation during a toilet break, and then blurts it out to the media. there's no safety net, no damage control...consequences? seriously? ...inactive post at the most.

[dansan]

and the next they come out with new draconian masseurs...

That auto-correct made my day

[SoFarAndNear]

Actually they want to make step forward. Closing loopholes is not really a bad idea. But closing the loopholes and still don't allow foreign ownership will for sure end in a disaster next year.

The new government is just forbid more and more and incriminate everything what people here are used to for years. Makes every one espacially anti governent easy targets for arrest. Reminds me and more of the takeover of the NSDAP in Germany 1933.

Edited November 20, 2014 by SoFarAndNear

[Strangebrew]

Ok It is your country and you can do as you please But one must think if you make it harder to business here companies here will pull up stakes and leave and won't come back then you will suffer a huge lose and the damage you do would take decades to recover from. Don't believe just look to the US and see your fate Detroit Used to be motor city 20 years later a ghost town. And it will never return to its former glory.

[julemanden]

Now a draft law put forward by the Ministry of Commerce would restrict foreign firms from being able to use preferred stock to retain control of their businesses.

"This proposed change would have far-reaching ramifications that would affect thousands of existing firms here, big and small, and would certainly deter future foreign investment," said Marcus Burtenshaw, executive director of real estate consultancy Knight Frank Thailand.

And just 3 days ago;

Special Report: Thailand welcomes all investors

¨Who are willing to loose all there savings

[MexicanFarang]

"but protecting Thai ones"

Ahhh. Like the Thai businesses building new computer, smart phones, electric cars and solar powered airplanes?

Bwaaaaahahahahaha. Right.

[MexicanFarang]

"And it will never return to its former glory."

Actually, Detroit is one of the top ten cities worldwide where Chinese are buying up real estate. Go figure.

It's future looks just as bright as any "third tier" city in China, post Real Estate Bubble crash....

[maidee]

maybe thailand should kick out all farang, and farang business & concentrate on growing rice & eating it

the thai rich elite will be happy

[Tuskfish]

Wow

If that is for real then we may just have to consider shutting down, sacking all the locals we currently support and go with international freelancers instead

And you will not be alone in that thinking.

I have been thinking this through and the claim that it is to "protect local Thai business who are not yet ready to compete".. Well if that statement really was true then dont grant any foreign investments in the areas you are trying to protect, right?

Also, the status quo is 49% ownership is foreign but Board can be foreign so Executive decisions are made by foreigners,, so proposed changes,, board has to be Thai and executive decisions have to be Thai made.. Thinking about the second option, how does this protect local business? The Thai board will still have resources and expertise of a foreign company,, do they think that a Thai board will make "moral" decisions not to trample on local businesses too much? To pull back the aggressive expansion plans as it will kick Mr and Mrs not ready into the weeds?

Get real, this is about money, the top nobs gleaning money.. Foreigners invest money, own less then half their investment from day 1 and then give all decision making over to locals..

I think we should ALL just tell them where to go, pack up and tender the enormous amount of foreign money here to neighbouring countries. Its about time the foreigners made Thailand realise how much we ALL need International business and said enough! We take our business elsewhere....!

I am going to have a very serious look at it over the coming weeks.

Agreed, this topic certainly has my attention.

My final comment on the topic tonight would be for some of us it's actually a case of...

How much do you trust your wife?

Sure she is the majority share holder but she is a teacher who makes her own salary and has little clue of what happens in "her" business anyway.

Regardless of percentages on paper it's 100% my business and 100% my decision on what happens.

However as much as I believe in our relationship, it's an unhealthy and unnecessary risk to take in business and probably in a relationship too.

I guess the other thing to consider for myself and others in this boat would be...

If you move your business back to your home country because of this, does that remove the risk? i.e. the real risk in my case is if we were to separate and she turned nasty. In which case it may not matter which country my assets/business are in anyway....

Maybe the voting rights is a false sense of security anyway

Food for thought for some of us, although I suspect different for those who actually have real Thai investors involved

Edited November 20, 2014 by Tuskfish

[Thai at Heart]

Execellent. For those who complain, no one asked you to start a 'business' in Thailand. Somehow foreigners stil think that Thai need them, think twice. Most Thai having university degrees are very well educated whether it is IT, economics etc and can work at any Multi National. For the small 'businesses' I think it is completely logic government helps to protect Thai interest.

Are you trying to be funny or do you really mean what you say?

In the western world, we have 15 year old computer geeks more educated in IT than 25 year olds with a university degree in IT.

I have worked with around 30 "programmers" here in Thailand during my eight years here and none comes even close to compete with programming skills or creativity to solve normal everyday programming problems with a farang.

Thai culture puts a halt on creative thinking as no one wants to stand out in the crowd.

Thais can't even understand and learn from English written computer literature as their language skills are too poor.

For those few Thais that can, they themselves, flees Thailand and ends up in another country who pays more, don't have illiterate bosses etc.

Really? It`s a shame that the Thais do not share your opinions that farangs are superior to Thais in education and skills that the Thais could never compete with. The question is, how would Thailand manage to function without the intervention of westerners shaping their society and showing them how things should be done?

The Thais are not as inferior and of low intelligence as you try to portray them, they may try to squeeze the golden goose a little but have enough savvy to know not to kill it off completely. The foreign owed large companies and the BOI have mutual agreements that is to the satisfaction of all concerned, these new policies will not place at risk the relationships between the big foreign shareholder companies and the Thai Board of Trade.

The companies that will be mostly affected are the more non-significant foreign run businesses that the Thai authorities perceive have having little or no benefits to Thailand and if not able to hack it under the laws of foreign shareholder companies policies, do not give a rat`s behind if they just fade away into oblivion. The only people who will be griping the most are the farangs who are unable to own and run companies in the kingdom strictly pertaining to Thai company law ownerships and brassed off that the good days of making profits without putting back what they take out and low expenditure is coming to an end and this will not have any negative affects on Thailand whatsoever.

Nonsense. There are many firms in restricted businesses that use these share structure.

Some massive foreign investors are in these systems and would be caught up in a trice. There are also many longlived businesses where very important strategic investors are in partnerships where 51% ownership definitely doesn't confer 51% voting.

Literally dozens and dozens of massive strategic joint ventures are set up that way.

Often involving some very important investor. Nuff said